Standard Chartered Bank (Pakistan) Limited syndicate will provide Rs 1.1 billion Islamic finance facility to Ittehad Chemicals Limited. In addition to Standard Chartered Bank, other participants of the deals are Faysal Bank Limited, United Bank Limited-Ameen, Askari Commercial Bank Limited, Pak Libya Holding Company (Pvt) Limited, First Dawood Islamic Bank Limited, Atlas Bank Limited, and the United Composite Islamic Fund.

The agreement was signed by head of Client Relationships of Standard Chartered Bank Imran Ahad and Executive Director of Ittehad Chemicals Usman Ghani Khatri at a ceremony held at a local hotel on Wednesday.

Speaking on the occasion, Usman Ghani Khatri said that Ittehad Chemicals produced caustic soda and chlorine, widely used in various diversified industries, especially textile and soap industry. He said that funds raised through this facility would be utilised to refinance the existing conventional loans on the company's books.

Ittihad chemicals was formed in 1963 and later in 1965, it was acquire by Chemi group, while in 2003, it has listed at Karachi Stock Exchange, he said. He said that in the next phase, Chemi group would further acquire around rupees two billion financing to invest in real state sector.

Commenting on agreement, Imran Ahad said: "We are confident that this arrangement will strengthen our partnership with Ittehad Chemicals Limited, resulting in synergies and value addition for the company, industry and for Pakistani market at large." He said that this financing had been provided under Islamic banking, "Sadiq," by Standard Chartered Bank, started three years back in Pakistan.

Standard Chartered Bank is the largest international bank in Pakistan, operating in the country for last over 140 years since it started its operations in 1863 in Karachi, he said.

He said that after the recent acquisition of Union Bank, Standard Chartered Bank had a combined branch network of 116 branches across 22 cities with access to 119 ATMs. On the occasion, Ghulam Mustafa Khatri also gave a presentation on the company's performance.